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Cisco acquires Viptela to boost SD-WAN offering

Steve Rogerson
May 4, 2017
Cisco is to acquire Viptela, a privately held software-defined wide area network (SD-WAN) company based in California, for $610m. Viptela will expand Cisco's SD-WAN portfolio with increased functionality and simplicity delivered through the cloud.
Managing the network is becoming more complex as applications move to the cloud, employees become more mobile and billions of IoT devices are added to the network. For businesses, this means how branch offices are connected must evolve. Customers are turning to SD-WAN to help manage and orchestrate their WAN deployments, to improve access cost effectively to both the cloud and their corporate network.
Viptela’s SD-WAN product is said to simplify management, increase agility and reduce costs of interconnecting dispersed enterprise networks. Its network management, orchestration and overlay technologies make it easy to deploy and manage SD-WAN. This cloud-first approach also aligns with Cisco's DNA digital network architecture transition to software-driven, automated networks that are more flexible, responsive and dynamic.
"Viptela's technology is cloud-first, with a focus on simplicity and ease of deployment while simultaneously providing a rich set of capabilities and scale," said Scott Harrell, senior vice president at Cisco. “These principles are what today's customers demand. With Viptela and Cisco, we will be able to deliver a comprehensive portfolio of comprehensive on-premises, hybrid and cloud-based SD-WAN solutions."
With this announcement, Cisco will be able to accelerate the path to developing next generation SD-WAN by combining Viptela's cloud first network management, orchestration and overlay technologies with routing platforms, services and SD-WAN capabilities from Cisco. Cisco is committed to Viptela's product offering and architecture as well as existing Cisco intelligent WAN (IWAN) and Meraki SD-WAN products. The acquisition of Viptela also supports Cisco's strategic transition towards software centricity that delivers predictable, recurring revenue.
The Viptela team will join the enterprise routing team within the networking and security business led by senior vice president David Goeckeler. After the acquisition closes, Viptela and Cisco engineering teams will be working closely to enhance Cisco's SD-WAN offering and ensure continued support for customers.
Cisco will acquire Viptela for $610m in cash and assumed equity awards. The acquisition is expected to close in the second half of 2017, after having completed all of the customary closing conditions and regulatory review.